BUSINESS services giant Rentokil Initial has signed a major fleet deal for its 5,500 vehicles worth £20 million a year. It has awarded the fleet contract covering its 3,500 cars and 2,000 light commercial vehicles to Arval PHH.

Arval PHH is now the principle supplier of maintenance and accident management for the fleet and will also provide leasing services.

Rentokil Initial's director of procurement, Mike Tunnell, said: 'Arval PHH was able to demonstrate significant savings through the introduction of improved labour rates with national suppliers, parts discounts and overall cost control at the point of authorisation – where we also take advantage of the technical expertise of the Arval PHH engineers.

'This deal consolidates our fleet policy and has enabled us to introduce an online fleet management system through Arval PHH's InterActive platform, providing cost visibility and key vehicle data across the group.

'We have been able to develop a real strategic partnership with Arval PHH, which will deliver a significant cost benefit and improved reporting in these important spend categories.'

Rentokil Initial operates in four markets of hygiene, security, facilities management and parcels delivery, and services within these four markets are all provided under either the Rentokil or Initial brand names.

Arval PHH major customer division strategic sales manager Andrew Goodwin said: 'The original remit was to identify cost-reduction initiatives and consistent reporting opportunities in a number of key areas. It has also assisted the consolidation of Rentokil Initial's purchasing by incorporating national arrangements with suppliers such as ATS.'

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